Pit & Quarry, December 2017

Companies in FMIs Construction Materials Index are currently trading at around highs not seen in a decade or so and Summit Materials have also entered the cement market in the United States In less than four years the market has been turned on its head becoming both substantially more concentrated and vertically integrated in nature With the announcement of the CRHAsh Grove deal in the third quarter the market for mergers and acquisitions in the construction materials market is reaching highs not seen since 2007 However the implications of the CRHAsh Grove transaction in the wake of the wave of megamergers that began in 2014 will likely make this current cycle one of the most robust construction materials M A environments in our lifetimes Mergers and acquisitions are difficult and expensive However there are three primary factors that will make strategic investors jump at the opportunity to www kpijci com The Portland Cement Association forecasts a downturn in the market in 2021 Figure 1 CMI EV EBITDA 2007 to present 160 140 120 100 80 60 40 20 0 Jan 07 Jan 08 Jan 09 Source CapitalIQ FMI Jan 10 Jan 15 Jan 16 Jan 17 Jan 11 Jan 12 Jan 13 Jan 14 pitandquarry com December 2017 PIT QUARRY 23 PHOTO BY KEVIN YANIK

View the Covers and the Table of Contents pages from every issue of this publication, all gathered together for easy browsing. Just flip pages and zoom as you normally do to see each issue's Cover and Table of Contents, then follow links directly to interesting content.